Fiserv Vies with Fidelity National for eFunds

SCOTTSDALE, Ariz. – Shares in funds processor eFunds, now known as EFD, rose almost 5% Friday after it was revealed that both Fiserv and Fidelity National Information Services submitted bids to buy the company for more than $1.5 billion. eFunds, which processes transactions for the credit union-owned CO-OP Network, put itself on the sales block last month. At least four bidders have submitted offers for eFunds, which is apparently moving to a second round of bidding. A deal for eFunds would be the fourth multi-billion-dollar transaction for payments processors so far this year, including the blockbuster $29 billion takeover of First Data Corp. by Kohlberg Kravis Roberts & Co., the $8 billion acquisition of Alliance Data by privaye equity fund The Blackstone Group, and the planned spin-off of Metavante Corp. by Marshall & Ilsley. Shares of eFunds have surged more than 25% since May 9 when the company said unidentified parties “expressed a desire to explore possible strategic alternatives.”